Figure 2D, Regular Installment Method—Illustrated Example 1 (Anne and Larry Jones)
Summary: This is an example of the estimated tax worksheet using the regular installment method. The completed line items are:

1. Adjusted gross income you expect in 2009 (see instructions below)
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2. If you plan to itemize deductions, enter the estimated total of your itemized deductions. Caution: If line 1 above is over $166,800 ($83,400 if married filing separately), your deduction may be reduced. See Pub. 505 for details. If you do not plan to itemize deductions, enter your standard deduction from page 1 or Pub. 505, Worksheet 2–3
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3. Subtract line 2 from line 1
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4. Exemptions. Multiply $3,650 by the number of personal exemptions. Caution: See Pub. 505 to figure the amount to enter if line 1 above is over: $250,200 if married filing jointly or qualifying widow(er); $208,500 if head of household; $166,800 if single; or $125,100 if married filing separately
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5. Subtract line 4 from line 3
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6. Tax. Figure your tax on the amount on line 5 by using the 2009 Tax Rate Schedules on page 5. Caution: If you have qualified dividends or a net capital gain, or expect to claim the foreign earned income exclusion or housing exclusion, see Pub. 505 to figure the tax
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8. Add lines 6 and 7. Add to this amount any other taxes you expect to include in the total on Form 1040, line 44, or Form 1040A, line 28
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10. Subtract line 9 from line 8. If zero or less, enter 0
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11. Selfemployment tax (see instructions below). Estimate of 2009 net earnings from selfemployment $(field contains 37,032); if $106,800 or less, multiply the amount by 15.3%; if more than $106,800, multiply the amount by 2.9%, add $13,243.20 to the result, and enter the total. Caution: If you also have wages subject to social security tax or the 6.2% portion of tier 1 Railroad Retirement tax, see Pub. 505 to figure the amount to enter
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13a. Add lines 10 through 12
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13b. Earned income credit, additional child tax credit, and credits from Forms 4136, 5405, 8801 (line 27), and 8885
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13c. Total 2009 estimated tax. Subtract line 13b from line 13a. If zero or less, enter 0
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14a. Multiply line 13c by 90% (66 2/3% for farmers and fishermen)
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14b. Enter the tax shown on your 2008 tax return (110% of that amount if you are not a farmer or fisherman and the adjusted gross income shown on that return is more than $150,000 or, if married filing separately for 2009, more than $75,000)
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14c. Required annual payment to avoid a penalty. Enter the smaller of line 14a or 14b. Caution: Generally, if you do not prepay (through income tax withholding and estimated tax payments) at least the amount on line 14c, you may owe a penalty for not paying enough estimated tax. To avoid a penalty, make sure your estimate on line 13c is as accurate as possible. Even if you pay the required annual payment, you may still owe tax when you file your return. If you prefer, you can pay the amount shown on line 13c. For details, see Pub. 505.
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15. Income tax withheld and estimated to be withheld during 2009 (including income tax withholding on pensions, annuities, certain deferred income, etcetera
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16a. Subtract line 15 from line 14c.
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Is the result zero or less? Checkbox Yes. Stop here. You are not required to make estimated tax payments. Checkbox No. Go to line 16b.
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16b. Subtract line 15 from line 13c.
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Is the result less than $1,000? Checkbox Yes. Stop here. You are not required to make estimated tax payments. Checkbox No. Go to line 17 to figure your required payment.
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17. If the first payment you are required to make is due April 15, 2009, enter 1/4 of line 16a (minus any 2008 overpayment that you are applying to this installment) here, and on your estimated tax payment voucher(s) if you are paying by check or money order. (Note: Household employers, see instructions below.)
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